Volkswagen to Invest EUR400 Million in Power Station Modernization

Volkswagen AG (VOW.XE) said Thursday it plans to invest about 400 million euros ($496.5 million) to modernize two of its power stations in Wolfsburg, Germany.

The German car maker's two power stations will be redesigned to use natural gas instead of hard coal, Volkswagen said.

Construction is scheduled to start in 2018 and commissioning is expected to follow in 2021 or 2022.

Volkswagen expects the new gas turbines to reduce carbon-dioxide emissions for heat and power generation by about 1.5 million tons a year, it said.

"By 2025, we will reduce environmental impact throughout the Volkswagen Group by 45% compared with 2010. The changeover of the power stations from coal to gas is an important step--others will follow," said Chief Executive Matthias Mueller.